Trades Request Extension for Resolution Plan Guidance of Domestic and Foreign Triennial Filers

Ladies and Gentlemen:

The Bank Policy Institute, American Bankers Association, Institute of International Bankers, and Securities Industry and Financial Markets Association[1] respectfully request that the Board of Governors of the Federal Reserve System and the Federal Deposit Insurance Corporation extend the current March 31, 2025, submission deadline for domestic and foreign triennial full filers to ensure filers will have at least one year to prepare their resolution plans following finalization of the proposed guidance published on September 19, 2023.

Background

On September 19, 2023, the agencies published in the Federal Register proposed revised guidance for domestic and foreign triennial full filers.[2] The proposed guidance represents a major extension of expectations currently applicable to the largest filers to Category II and III institutions, as well as an increase in expectations for certain foreign banking organizations. Moreover, the proposed guidance represents the first time the agencies have provided a comprehensive set of expectations to most of those firms. The proposals indicated that the agencies were considering “a short extension of the next resolution plan submission date.”[3] Our letters responding to the proposals urged the agencies to provide a one-year extension of the submission date.[4] We also requested that, in the interim, the agencies provide an immediate extension of the original July 1, 2024, submission date.[5]

On January 17, 2024, the agencies extended the submission deadline until March 31, 2025.[6] That extension noted the agencies are continuing to develop final guidance for triennial full filers. FDIC Board materials indicated FDIC staff “hope[d] to present the final guidance to the [FDIC] Board in March 2024, with the objective of having the Board and the Board of Governors consider the matter at roughly the same time.”[7] The initial extension of the submission date to March 31, 2025, has helped affected filers avoid unnecessary efforts and costs prior to the original submission date. However, filers are now approximately 10 months from the March 2025 submission date and are again facing the prospect of needing to prepare their submissions in less than one year without finalized guidance.

Request for Extension of March 31, 2025, Submission Date

We request that the agencies extend the current March 31, 2025, submission date until the date that is one year after the date finalized guidance is published in the Federal Register[8] This request is consistent with the rationale of the prior extension, which was intended to be for approximately one year following the finalization of the proposed guidance[9] Providing a timely further extension of the submission date is necessary because filers cannot rely on an expectation of an extension to initiate changes to their usual internal review and governance processes. Absent an extension in the near-term, institutions will need to begin preparing their plans and incurring associated expenses only to revise and update their approach once any guidance is finalized. We continue to believe this outcome would be contrary to the purpose of resolution planning, which, by its very nature, should reflect an intentional and systematic approach to resilience and resolution readiness.

To access a full copy of the comment letter, please click here. To access BPI’s previous comment to the agencies, please click here.


[1] See Annex.

[2] Guidance for Resolution Plan Submissions of Domestic Triennial Full Filers, 88 Fed. Reg. 64626 (Sept. 19, 2023); Guidance for Resolution Plan Submissions of Foreign Triennial Full Filers, 88 Fed. Reg. 64641 (Sept. 19, 2023).

[3] 88 Fed. Reg. 64626, 64629; 88 Fed. Reg. 64641, 64645.

[4] See Bank Policy Institute, Comment Letter Regarding Request for Public Comment on Guidance for Resolution Plan Submissions of Domestic and Foreign Triennial Filers, submitted November 30, 2023; Institute of International Bankers, Comment Letter Regarding Notice of Proposed Guidance, Guidance for Resolution Plan Submissions of Foreign Triennial Full Filers; Federal Reserve Docket No. OP–1817 and FDIC RIN 3064–ZA38, submitted November 30, 2023.

[5] Bank Policy Institute, American Bankers Association, Institute of International Bankers, SIFMA, Comment Letter Regarding Interim Extension of the July 2024 Submission Date for Triennial Filers, submitted November 30, 2023.

[6] See Joint Press Release, Board of Governors of the Federal Reserve System and FDIC, Agencies extend resolution plan submission deadline for some large financial institutions (January 16, 2024), available at https://www.federalreserve.gov/newsevents/pressreleases/bcreg20240117a.htm; and https://www.fdic.gov/news/press-releases/2024/pr24002.html.

[7] Memorandum to the FDIC Board of Directors from Arthur J. Murton Regarding Extension of Title I Resolution Plan Submission Deadline for Triennial Filers (January 16, 2024) (hereinafter FDIC Board Memorandum).

[8] If the agencies finalize the guidance this quarter, we request that the submission date be extended to July 1, 2025. A July 1, 2025, or later submission date would provide filers sufficient time to incorporate 2025 supervisory scenarios with a year-end 2024 as-of date. In any event, we urge the agencies to clarify an as-of date for those firms subject to the Federal Reserve’s Comprehensive Capital Analysis and Review (CCAR).

[9] Id. at 4 (noting staff recommend an extension until March 31, 2025, because it is “approximately one year after the target date for the final guidance”).